Lucy likes to manage her own share portfolio and believes she has a good history of success. She particularly likes banking shares as she 'always does well with them'. She feels very strongly about staying away from IT shares as her brother lost everything in the technology bust in 2001. Lucy is watching the latest investment news flash and sees that the price of AB bank has dropped quite a bit. She gets excited as she feels they must be undervalued and quickly logs on to her trading account. Lucy buys $50,000 of AB Bank shares as she recalls how successful her last bank share purchase was. One week later she is reading the financial news and the price of AB Bank has fallen again as there has been a significant compliance breach that has become more serious since it was reported last week.

(a) Identify the key behavioral finance issue presented in this scenario. Include in your response a brief definition of the issue. 

(b) Provide evidence from the scenario to support your assessment.
(c) Discuss the consequences of the impact of this issue in the context of the scenario provided if the issue is not identified and addressed appropriately. 

(d) Based on the scenario, identify how the issue impacts either the giving or receipt of information. For example, what type of information is likely to be provided to investors in the scenario by the adviser, or what type of information would help the client in the scenario.